India's computer market grows 2.5 per cent in second quarter

The combined desk-based and mobile personal computer market in India totaled nearly 2.5 million units in the second quarter of 2011, a 2.5 per cent rise over the same period of 2010.

All the major multinational PC vendors, with the exception of HP, posted double-digit growth in PC shipments during the quarter under review, according to report by global advisory firm Gartner Inc. Acer dethroned HP from the No 2 position in the market due to its strong commercial business. Dell, with 17 per cent market share, held to its No.1 position, while Acer was in the No 2 ranking with 12 per cent market share.

Multinational brands contributed more than half of the total PC shipments in the second quarter of 2011 with shipments from Acer, Dell, HP and Lenovo, the top 4 vendors, representing 50.4 per cent of the market.

Local vendor HCL accounted for 6.6 per cent of PC shipments in the second quarter of 2011, it said.

"This growth was primarily driven by the mobile PC market which grew 17 per cent year-on-year in the second quarter of 2011," said Vishal Tripathi, principal research analyst at Gartner.
 
"Economic factors such as rising interest rates and high inflation costs resulted in slower consumer demand. With the recent hike in commodity pricing such as fuel and food items, the cause of concern continues to exist in the Indian market. However, we expect the market to perform far better in the coming quarter to due the festive season which is considered as auspicious for buying," he added.

India's PC market share estimates for Q2-2011 (Percentage of shipments)